President Robert Mugabe has given a go ahead to the closure of companies that have not conformed to the 51% indigenisation directive by April 1, a move likely to trigger massive job loses.
Youth, Indigenisation and Economic Empowerment minister Patrick Zhuwao, said that Cabinet endorsed the decision to close all non-compliant firms.
The order affects foreign owned banks,mines and the few remaining firms in the manufacturing sector.
Zhuwao said it was the duty of the affected workers to ensure that their employers were compliant with the country’s laws or else they would lose their jobs, as the government was not going back on the matter.
Zimbabwe has been experiencing continued closure of companies due to economic hardships, causing massive job losses.
Economic analyst, Tony Hawkins said the announcement by Zhuwao showed the level of disunity within the Zanu PF government, as some ministers were lobbying for foreign direct investment, which was likely to be affected by Mugabe’s order.
University of Zimbabwe political science lecturer, Eldred Masunungure said although, legally, government was correct in closing down companies that have not complied with the law, it would however make thousands jobless and send a negative picture of the country’s investment climate to the international community.
- News Day
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